Investing in Bitcoin necessitates confidence and prudent income.
What the fuck is "prudent income"? Is that some vague nonsensical term that you read someone else write, so you thought that it sounded smart?
Those that employ conservative income will surely be able to sustain their Bitcoin investment for a long time, and you should establish an emergency fund to keep your Bitcoin investment safe. New people will feel more safe if they build on this approach, because by following it and the DCA method for a long time, they will be able to produce a wealth of money in the future with a small investment.
I understand what you are saying which might relate to making sure to use discretionary income to buy bitcoin and to not use all of your discretionary income to buy bitcoin. That makes sense if you don't use dumb ass vague terms like "prudent income"
While weekly investment in Bitcoin is the most crucial, if you have enough money, you may use the DCA approach to buy Bitcoin while keeping a little amount of cash. Then your Bitcoin investment will be able to perform more safely in the future, and you will certainly be successful in the long term if your strategy is sound.
Keep little amounts of cash? That sounds dangerous.
How come you are not building up back up funds? Also, are you starting out with low levels of back up funds and you are also suggesting to merely keep a little bit of cash? That comes off as a recipe for disaster.
There are likely many folks who had already been in the practice of maintaining back up funds prior to coming to bitcoin, since so many people are likely worried that they have enough money to cover all of their basic expenses until the next time that they get paid, so each pay period and perhaps even over long periods of time (even prior to coming to bitcoin) they may well would have already been in a practice of keeping 2-6 weeks of cash that would be able to cover the fluctuations in their discretionary funds that might result in lower income and/or higher expenses.
And, surely some people are better at keeping back up funds than others (even before getting involved in bitcoin investing).
So a brand new person to bitcoin may well already have some practice of keeping some back up funds, and even though we frequently talk about guys who get into bitcoin and they have absolutely no back up funds, those kinds of guys are likely the exception rather than the rule when it comes to how normal people try to behave in terms of managing their income and/or expenses.
I am not even claiming that bitcoin newbies are good at managing their income/expenses, yet we cannot necessarily presume that guys who have already had income/expenses, they have also tended to have some incentives to make sure that they do not run out of money between paychecks.
At the same time, there could be some guys who have large amounts of cash already that they had been saving when they come to bitcoin, so when they come to bitcoin, it may well be practical (and "prudent") for them to consider allocating some of their already built up savings towards buying bitcoin. Those are individual choices, and surely many of us recognize and appreciate that there are benefits in having more money to be able to invest rather than having less money or no money or barely having discretionary funds without any back up funds.
In any event, many of us also tend to talk about how it is likely a good practice to build up bitcoin holdings and backup funds at the same time, even though the rate of building them up might not be at the same rate - depending on personal preferences in that regard.
Yep @MarjorieZimmermanGinger is not distinguishing between basic expenses and discretionary expenses. He is also calculating in a pretty fucking high level of discretionary funds to be able to invest 30% and put 20% into emergency funds (back up funds). Most people cannot even come close to those levels of discretionary income.
When a guy has a lot of discretionary funds he tends to have a lot of options as compared with normal people who struggle to be able to invest/save consistently 10% of their income. For some reason MarjorieZimmermanGinger is able to save/invest 50% of his income. That is not typical at all.
Since MarjorieZimmermanGinger has been registered on the forum since April 2017, he must be rich as fuck by now if he had been investing 30% of his income into bitcoin for more than 9 years, then he would have had been able to put 3 years of his income into bitcoin, which truly would be remarkable results.
I will do a quickie look at the matter. Let's say that he earned $30k per year, and he was investing 1/3 into bitcoin since April 2017, then that would be $10k per year invested and so therefore right about $93k invested which would have had accumulated just over 8 bitcoin, which would be a great place to be for a guy with a $30k per year income..
Right now 8 BTC could support an income of about $3,500 per month, which would be $42k per year which is right around 40% higher than his current income, which would truly be fuck you status, even though maybe he wants to accumulate a bit more?
While @MajorieZimmermanGinger’s case is impressive, it isn’t quite typical to everyone else.
It sounds quite unusual and unlikely, even though there are guys who either have really high income levels or they have other assets that they can bring into bitcoin that might allow them to invest into bitcoin at a rate that is around 30% per year for 9 years or more.
It’ll not be easy for just anyone to split their income into two halves using one part for necessary daily life expenses and the other for investment and savings (backups) and doing it consistently must be a high earner or some one with unusually low expenses.
That is exactly the case. Most people struggle to get their discretionary funds even close to those kinds of levels, even though it is not impossible, it is just a bit of an unlikely scenario that MarjorieZimmermanGinger seems to be describing (unless he made some mistakes in his description?).
And with the narrative you’ve given it makes it clearer… I’ll also like to be in my fuck you status one day. However, for the normal guy he has to plan for his basic expenses first and sort out his discretionary income to be able to remain consistent with his investments.
I frequently suggest that if guys are able to invest on the high end of the range, then they are likely to put themselves into some variation of fuck you status faster, and surely the guys who started in bitcoin more than 10 years ago, had circumstances in which stacking reasonably aggressive levels of their income into bitcoin would have resulted in very great returns and abilities for a lot of guys to get to some variation of their fuck you status, even though, at the same time, a number of old timers screwed up, too. The mere fact of being in bitcoin more than 10 years does not automatically put those guys into fuck you status right now, even if some of them might have been able to at least get a reasonably good headstart towards getting to some variation of fuck you status.
Another thing, as you suggest, guys have to work within their own parameters, so many times I mention 5% to 25% of income put into bitcoin as being a fairly reasonable range of options, yet at the same time, if guys are able to invest towards the top of that range, such as 15% to 25%, they are doing quite well. It is difficult to be able to consistently invest higher than 25%, and even in some circumstances, it might not be a good idea to try to invest more than 25% since those kinds of levels might be pushing the limits of guys' abilities and the limits of their discretionary funds.
